Slightly overstated, but still interesting.
The Wal-Mart Era, the retailer's time of overwhelming business and social influence in America, is drawing to a close.
Using a combination of low prices and relentless expansion, Wal-Mart Stores Inc. emerged from rural Arkansas in the 1970s to reshape the world's largest economy. Its co-founder, Sam Walton, taught Americans to demand ever-lower prices and instructed businesses on running a lean company. His company helped boost America's overall productivity, lowered the inflation rate, and strengthened the buying power for millions of people. Over time, it also accelerated the drive to manufacture products in Asia, drove countless small shops out of business, and sped the decline of Main Street. Those changes are permanent.
Today, though, Wal-Mart's influence over the retail universe is slipping. In fact, the industry's titan is scrambling to keep up with swifter rivals that are redefining the business all around it. It can still disrupt prices, as it did last year by cutting some generic prescriptions to $4. But success is no longer guaranteed.
Now, the big-name brands that fueled Wal-Marts climb to the top are forging exclusive distribution deals with other retailers, or working to reduce their reliance on its stores. PepsiCo Inc., which favored mass-market campaigns a decade ago, recently skipped Wal-Mart when launching a new energy drink in favor of Whole Foods Market Inc. Consumer-products giant Procter & Gamble Co. gets 15% of its revenue from Wal-Mart, down three percentage points from 2003. Wal-Marts effort to expand internationally has had mixed success in affluent markets. Last year it exited South Korea and Germany after failing to adapt to local tastes and achieve economies of scale. In Japan, the companys low-price, high-volume approach has struggled in a country where low prices often equate to low quality. [From Wal-Mart Era Wanes Amid Big Shifts in Retail - WSJ.com]
I have been a Wal-Mart shopper ever since I moved to a small rural town in Arkansas. Although I live in Cincinnati now, I am still a loyal Wal-Mart shopper. True, I shop on-line and find some very good buys on high-end clothing and purses, however, I go to Wal-Mart for the cheapest prices on things that are necessary to see,touch or try on before you buy them...shoes,pants,etc. On-line shoppers must pay shipping and handling charges that sometimes are half to double the Wal-Mart price of the entire item (such as make-up), knick-knacks,etc. Also, color is difficult to match over the internet when shopping for decorating needs, etc. I like Target and other Wal-Mart competitors, but time is money and one-stop super stores save gobs an gobs of time. Wal-Mart prices consistently beat out all the other stores when our local news does comparison shopping. I would like for Wal-mart to add volume priced dental and doctor care in addition to dry-cleaning. The more I think about it, the more Wal-mart stock I think I'll buy! Of course, I want them to keep the Murphy USA gas prices low too!
The article in WSJ is right on and timely. I was just in a Wal-Mart Supercenter in Broomfield Colorado on a Saturday morning between 9 and 10 am) doing some grocery shopping and observed the followng:
- Shelves not stocked and employees still stocking shelves and blocking the aisles. I thought stocking occurred late at night or early in the morning when barely any people aren't in the store!
- Store looked run down (hey it is only a few years old!)
- Barely any employees in the store!
- Some packages of cheese had mold in them!
- Produce is sorry looking
- Food shelves empty.
- Poor selection of food.
- Food prices weren't all that good.